MGT 8803 SUPPLY CHAIN EXAM
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Strategy can be best described as the goal directed actions to gain and sustain ___?
- high performance in advancing industry capabilities
- superior performance in the markets in which the firm operates
- long term financial profits and economic viability
- operational improvements and product advancements
- the earth's environment and the well-being of the communities in which the firm operates -
CORRECT ANSWER - superior performance in the markets in which the firm operates
According to Michael Porter the essence of strategy is ______.
- leveraging operational and marketing effectiveness to create competitive advantage
- choosing what not to do
- maximizing ROI while driving cost of capital down
- copying what works from competitors and avoiding what doesn't work
- aligning the external market environment with the firm's business model - CORRECT
ANSWER - choosing what not to do
True/False: A criticism of the Traditional Top-Down approach to strategic planning is that
management assesses the external environment in terms of fit to the firm's current capabilities
rather than thinking more "outside the box" when formulating future strategies. - CORRECT
ANSWER - True
Consider both statements.
- Statement 1: Competitive advantage is always judged relative to other competitors in the same
industry or judged relative to industry average.
, - Statement 2: Regardless of cost, a differentiation strategy will always result in a competitive
advantage if the firm can charge a premium price for its products. - CORRECT ANSWER -
Only statement 1 is True
All of the following below are drivers that can create a differentiation advantage and a greater
willingness to pay except one. Select the one that does not belong on the list:
- brand
- existence of complements
- economies of scale
- customer experience
- product features
- product performance - CORRECT ANSWER - economies of scale
Which Statement below is true?
- Cost leadership is the most common generic strategy for firms focused on niche markets
- A firm is said to have a sustainable competitive advantage if it can consistently earn a profit
every kayear for a prolonged period of time
- To obtain a competitive advantage a firm must either create more value for customers while
keeping its costs comparable to competitors, or it must provide value equivalent to competitors
but at a lower cost.
- A firm that is charging the lowest price relative to its competitors will always be pursuing a
cost leadership strategy
- Bogus question: All of the above statements are true statements - CORRECT ANSWER - To
obtain a competitive advantage a firm must either create more value for customers while keeping
its costs comparable to competitors, or it must provide value equivalent to competitors but at a
lower cost.
Which statement best describes how Orange, a PC maker, delivers value? Note: consider our
discussion on Business Models when answering this question.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Strategy can be best described as the goal directed actions to gain and sustain ___?
- high performance in advancing industry capabilities
- superior performance in the markets in which the firm operates
- long term financial profits and economic viability
- operational improvements and product advancements
- the earth's environment and the well-being of the communities in which the firm operates -
CORRECT ANSWER - superior performance in the markets in which the firm operates
According to Michael Porter the essence of strategy is ______.
- leveraging operational and marketing effectiveness to create competitive advantage
- choosing what not to do
- maximizing ROI while driving cost of capital down
- copying what works from competitors and avoiding what doesn't work
- aligning the external market environment with the firm's business model - CORRECT
ANSWER - choosing what not to do
True/False: A criticism of the Traditional Top-Down approach to strategic planning is that
management assesses the external environment in terms of fit to the firm's current capabilities
rather than thinking more "outside the box" when formulating future strategies. - CORRECT
ANSWER - True
Consider both statements.
- Statement 1: Competitive advantage is always judged relative to other competitors in the same
industry or judged relative to industry average.
, - Statement 2: Regardless of cost, a differentiation strategy will always result in a competitive
advantage if the firm can charge a premium price for its products. - CORRECT ANSWER -
Only statement 1 is True
All of the following below are drivers that can create a differentiation advantage and a greater
willingness to pay except one. Select the one that does not belong on the list:
- brand
- existence of complements
- economies of scale
- customer experience
- product features
- product performance - CORRECT ANSWER - economies of scale
Which Statement below is true?
- Cost leadership is the most common generic strategy for firms focused on niche markets
- A firm is said to have a sustainable competitive advantage if it can consistently earn a profit
every kayear for a prolonged period of time
- To obtain a competitive advantage a firm must either create more value for customers while
keeping its costs comparable to competitors, or it must provide value equivalent to competitors
but at a lower cost.
- A firm that is charging the lowest price relative to its competitors will always be pursuing a
cost leadership strategy
- Bogus question: All of the above statements are true statements - CORRECT ANSWER - To
obtain a competitive advantage a firm must either create more value for customers while keeping
its costs comparable to competitors, or it must provide value equivalent to competitors but at a
lower cost.
Which statement best describes how Orange, a PC maker, delivers value? Note: consider our
discussion on Business Models when answering this question.
